Huasheng International Holding Limited (1323) AI Stock Analysis

• Market Cap: HK$125.44M
• Dividend Yield: N/A
• Average Volume (3M): 159.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• Revenue Growth: -34.16%
• EPS Growth: -66.02%
• Country: HK
• Employees: 173
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Household & Personal Products
• EPS (TTM): -0.07
• Shares Outstanding: 755,654,700
• 10 Day Avg. Volume: 171,000
• 30 Day Avg. Volume: 159,166
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 45 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is primarily influenced by the company's weak financial performance and poor valuation metrics. The technical analysis indicates a bearish trend, further weighing on the stock's outlook. The lack of earnings call data and corporate events means these factors do not contribute to the score.

Positive Factors

Cash Generation

The company's ability to generate positive free cash flow despite losses indicates effective cash management, which can support operations and investments over the long term.

Debt Management

The improved debt-to-equity ratio suggests manageable leverage, providing the company with financial stability and flexibility to navigate economic challenges.

Supply Chain Network

An extensive supply chain network enhances the company's ability to efficiently source and distribute products, supporting its competitive position and operational resilience.

Negative Factors

Revenue Decline

The significant decline in revenue reflects challenges in maintaining market share and demand, which can hinder long-term growth prospects and financial health.

Profitability Issues

Sustained profitability issues, as indicated by negative net profit margins, suggest operational inefficiencies and cost management challenges that may impact future financial performance.

Operational Inefficiencies

Negative EBIT and EBITDA margins indicate operational inefficiencies, which can undermine the company's ability to generate sustainable profits and compete effectively in the market.

Huasheng International Holding Limited Business Overview & Revenue Model

Company Description

Huasheng International Holding Limited, an investment holding company, engages in the concrete, money lending, and household consumables businesses in Hong Kong, the United Kingdom, and the People's Republic of China. The company is involved in the wholesale and retail of household consumables; and money lending activities. It also produces and sells ready-mixed commercial concrete; and cement and construction materials, as well as provides management services. The company was formerly known as Newtree Group Holdings Limited and changed its name to Huasheng International Holding Limited in March 2020. Huasheng International Holding Limited was incorporated in 2010 and is based in Central, Hong Kong.

How the Company Makes Money

Huasheng International Holding Limited generates revenue through multiple key streams, primarily from the sale of consumer electronics and textiles. The company engages in trading activities where it sources products from manufacturers and sells them to wholesalers and retailers, thereby earning a profit margin on each transaction. Additionally, the company may have revenue from manufacturing operations, where it produces goods under its own brand or for third-party brands. Significant partnerships with suppliers and distributors enhance its market reach and contribute to stable revenue flows. Moreover, the company's strategic focus on expanding its product lines and entering new markets plays a crucial role in driving its earnings.

Huasheng International Holding Limited Financial Statement Overview

Summary

Huasheng International Holding Limited faces significant challenges with declining revenue and profitability, as well as operational inefficiencies. The balance sheet shows moderate leverage, but the negative return on equity is a concern. Cash flow generation is a positive aspect, but the company needs to improve its operational performance to achieve sustainable growth.

Income Statement

The income statement shows a concerning trend with declining revenue and profitability. Revenue has decreased significantly over the years, with a notable drop of 18.77% in the latest year. Gross profit margin has also declined, indicating pressure on cost management. The company has been unable to maintain positive net income, with a net profit margin of -24.80% in the latest year, reflecting ongoing losses. EBIT and EBITDA margins are negative, highlighting operational inefficiencies.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio has improved slightly over the years, currently at 0.26, indicating manageable leverage. However, the return on equity is negative, suggesting that the company is not generating sufficient returns on shareholders' investments. The equity ratio is stable, showing a reasonable proportion of equity financing.

Cash Flow

Cash flow analysis reveals mixed results. While the company has achieved positive free cash flow growth of 11.67% recently, the operating cash flow to net income ratio is low, indicating challenges in converting income into cash. The free cash flow to net income ratio is relatively high, suggesting that despite losses, the company is generating cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	458.68M	372.57M	565.91M	660.37M	803.91M	919.33M
Gross Profit	105.43M	65.20M	154.46M	190.35M	181.54M	198.01M
EBITDA	18.95M	-39.08M	19.68M	-1.60M	82.69M	75.86M
Net Income	-52.06M	-92.38M	-31.44M	-54.77M	31.29M	-1.63M
Balance Sheet
Total Assets	1.58B	1.47B	1.64B	1.80B	2.03B	1.73B
Cash, Cash Equivalents and Short-Term Investments	140.52M	76.56M	163.36M	69.49M	167.83M	121.53M
Total Debt	332.51M	229.21M	338.40M	376.30M	341.71M	357.32M
Total Liabilities	628.65M	567.56M	675.58M	834.50M	1.07B	815.30M
Stockholders Equity	953.93M	897.85M	960.40M	964.30M	955.48M	919.17M
Cash Flow
Free Cash Flow	104.67M	116.88M	90.70M	-70.97M	70.98M	-29.86M
Operating Cash Flow	110.71M	128.70M	96.75M	-66.22M	77.98M	-22.28M
Investing Cash Flow	-467.00K	-89.57M	9.90M	-79.98M	-105.20M	-12.03M
Financing Cash Flow	-8.99M	-129.30M	-11.62M	117.50M	-51.15M	127.67M

Huasheng International Holding Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1323, the sentiment is Negative. The current price of 0.16 is above the 20-day moving average (MA) of 0.16, below the 50-day MA of 0.16, and below the 200-day MA of 0.17, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 47.85 is Neutral, neither overbought nor oversold. The STOCH value of 102.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1323.

Huasheng International Holding Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1338	63 Neutral	HK$154.96M	54.44	1.83%	―	5.99%	-74.29%
Sector *	61 Neutral	$10.29B	7.21	-0.05%	2.89%	2.87%	-36.73%
8436	57 Neutral	HK$94.80M	19.83	1.89%	―	-20.10%	-74.16%
1667	47 Neutral	HK$215.04M	―	-450.14%	―	-15.95%	19.75%
1323	45 Neutral	HK$125.44M	―	-8.47%	―	-34.16%	-66.02%
6893	44 Neutral	HK$220.54M	―	-27.11%	―	-0.79%	-34.52%
8281	44 Neutral	HK$119.00M	18.03	2.37%	3.48%	-1.65%	230.00%

Huasheng International Holding Limited Corporate Events

Huasheng International’s AGM Resolutions Unanimously Passed

Huasheng International Holding Limited announced that all resolutions proposed at their Annual General Meeting on August 15, 2025, were unanimously passed by shareholders. This includes the re-election of directors and the appointment of auditors, reflecting strong shareholder support and stability in the company’s governance structure.

Huasheng International Reports Significant Financial Decline for FY2025

Huasheng International Holding Limited reported a significant decline in its financial performance for the year ended March 31, 2025. The company’s revenue from continuing operations decreased by 32% to HK$372.6 million, and gross profit fell by 52.2% to HK$65.2 million, resulting in a gross profit margin drop to 17.5%. The loss attributable to the owners of the company amounted to HK$92.4 million, highlighting a challenging year for the company.

Huasheng International Updates Nomination Committee Terms

Huasheng International Holding Limited has revised the terms of reference for its Nomination Committee as of June 30, 2025. The committee, which is appointed by the board of directors, must consist of at least three members, with a majority being independent non-executive directors, and include at least one member of a different gender. This revision aims to align with the Listing Rules of the Hong Kong Stock Exchange, potentially enhancing the company’s governance structure and ensuring diverse representation in its leadership.

Huasheng International Projects Increased Net Loss Amid Market Challenges

Huasheng International Holding Limited has issued a profit warning, projecting a significant increase in net loss for the fiscal year ending March 2025, estimated at around HK$95.0 million compared to HK$31.4 million the previous year. This increase is attributed to a decline in demand for concrete products due to a slump in the real estate sector, reduced infrastructure spending, and a drop in selling prices, alongside increased impairment losses and a one-off loss from the disposal of a subsidiary. Stakeholders are advised to exercise caution as the financial results are yet to be finalized.

Huasheng International to Announce Annual Results and Dividend Decision

Huasheng International Holding Limited has announced that its board of directors will meet on June 30, 2025, to approve the company’s annual financial results for the year ending March 31, 2025, and to consider declaring a final dividend. This meeting is significant as it will provide insights into the company’s financial health and potential returns for shareholders, which could impact investor confidence and market positioning.